Economy keeps mixed-use project at Port SA on hold

Published 12:05 am, Thursday, July 21, 2011

The development of Kelly Town Center, a residential, retail and recreational space at Port San Antonio, has been the plan since the Air Force left Kelly Air Force Base a decade ago.

But a lack of investors and a down economy has left the idea for the mixed-use development just that: an idea.

Port officials are searching for tenants for 136-acre Town Center. While there has been some interest, investors haven't stepped forward to develop there.

"It's a reflection of the economic slowdown and there hasn't been much investment in new development throughout," said Paco Felici, public information manager for Port San Antonio.

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To help lure investors, Felici said there are several economic incentives available, but investment is slow to come. Plus, infrastructure work is ongoing, including a $40 million update to 36th Street, which runs two miles alongside the site for the Town Center up to U.S. Hwy. 90.

There also are plans for a 144-acre site, called Lindbergh Park, for mixed-use facilities and offices for additional military agencies.

Many existing buildings at the port are being used for residential purposes. The Billy Mitchell Village apartment complex, former military housing dating to the 1940s, has 32 units available out of the 374 total.

The complex currently is being renovated and the plan is to have about 100 units online before the end of the year. Cost for two, three and four bedroom units ranges from $725 to $825 per month.

Other residential complexes are the England townhomes, 18 duplex units that all are leased, and the Chennault Circle apartments, which aren't actively on the market. Three- and four-bedroom units there cost up to $950 per month.

About half of the port's residents work there and apartments are available at market price, Felici said.

Also part of the mixed-use plan is to incorporate another educational campus near the Town Center.

Despite the obstacles the mixed-use development faces at the port, the idea to utilize it in that way remains a viable option.

"The idea, fundamentally, is great," said Jack Duke, president of DH Realty Partners. "It really fills an infill need in an area that has been overlooked by the general community for some time. They're just big projects, and so they take a lot of money and a lot of time."